Recovery of export benefits given under Incentive and Reward Schemes under Chapter 3 of FTP on re-import of exported goods —M/ - Customs - Standing Order No. 01/2019-20

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE, MUNDRA PORT, KUTCH, GUJARAT- 370 421. F. No. VIII/48-42/AG-CHM/Public Notice/2019-20 Date: 09/09/2019 Standing Order No. 01/2019-20 Subject: Recovery of export benefits given under Incentive and Reward Schemes under Chapter 3 of FTP on re-import of exported goods -M/ reg. Attention pf all concerned officers of customs is invited to Notification No. 94/1996-cus dated 16.12.1996, No.45/2017- cus, No.46/2017-Cus and No.47/2017-Cu all dated 30.06.2017 regarding re-import of goods exported from India. 2. In this connection, issue regarding recovery of export benefits given under incentive d reward schemes under Chapter 3 of Foreign Trade Policy (FTP) on re-import of exported goods has been highlighted by C AG Of India in its observations that there is no provision in the Customs notification to recover the duty credit given under reward and incentive schemes under Chapter 3 of FTP at the time of re-import of such goods on which such benefit has been availed at the time of export. 3. The issue was examined by CBIC in consultation with Directorate General of Foreign Trade (DGFT), which administers the reward schemes under Chapter of FTP. DGFT has informed that RBI Master Direction on exports and imports issued vide F.No. RBI/ 2006-2007/313 A.P.(DIR Series) Circular No .37 ted 05 April, 2007 already has a provision regarding refund bf incentives taken from DGFT for such re-imports. DGPT has also informed 3 that as per part .24 of Handbook of Procedures issued under FTP 2015-20, a procedure for obtaining 'No Incentive Certificate' from Regional Authority (RA) Of DGPT has been prescribed for such cases Of re-import. 4. Thus it is incumbent upon the importer to provide a no incentive certificate from RA of DGFT at the time of re-import of exported goods. Accordingly, it is reiterated that before allowing clearance in cases of re-import Of exported goods, a 'No-incentive Certificate' from the respective RA of DGFT shall be ensure by the Import Groups. 5. Further, Import Groups are directed to review past cases of re-import Of exported good and take necessary action for recovery of inadmissible duty credit, if any, in ordination with DGFVI' authorities. A compliance report may be sent to Appraising General section for onward submission to Board Office by 20.09.2019 positively . 6. In case of difficulty faced in implantation of this standing order same should be brought to the notice of the undersigned (Sanjay mar Agarwal) Principal Commissioner,